How Does Downsizing Affect the Company

question 32

Multiple Choice

How does downsizing affect the company?

• A) After a brief company improvement, there can be many negative affects.
• B) Many employees become more committed to the organization because their job has been spared.
• C) Employees often worry about job security and become angry that they have to work harder for the same pay.
• D) Downsizing doesn't seem to affect commitment or morale.

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Definitions:

Overapplied Overhead

A situation where the allocated manufacturing overhead cost for a period exceeds the actual overhead costs incurred, leading to a favorable variance.

Applied Overhead

The allocation of overhead costs to specific cost objects, such as products or jobs, based on a predetermined rate or method.

Actual Overhead

The real costs incurred by a business for its overhead during a specific period, not estimated.

Production Efficiencies

The optimization of processes to maximize output while minimizing waste and costs.